Gold price remains above the support area of $1,180-85, increasing chances to move towards $1,200. My longer-term view remains bearish. Critical long-term support is seen at $1,130.
Red line – support trend line
Gold price has held above the red upward sloping trendline from $1,140. Gold is showing signs of a possible bounce towards at least $1,200. Resistance by the Ichimoku cloud is at $1,200-$1,205. Support is at $1,185. The trend remains bearish as the price continues to make lower lows and lower highs.
The weekly chart remains bearish. The price remains below the cloud resistance and below both the kijun- and tenkan-sen indicators (yellow and red line). If this week closes below the red line, there will be increased chances of a push towards the bottom area of $1,130-$1,140. This is important support. If it gets broken, the way down towards $1,000 will be open.
The material has been provided by InstaForex Company – www.instaforex.com